The iPhone 5C is $99 with a two-year contract, or $549 without a contract in the U.S. In China, where the smartphone market is booming (and Apple is getting whooped) the iPhone 5C will cost over $700.

"The reality of much of the world is that people don't sign two year contracts like we do here in the US," says Wilson. "They buy pre-paid sim cards and stick them into unsubsidized phones. And on that basis, the 5C is a big disappointment."